Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Synergy Pharmaceuticals Inc (SGYP), Proteon Therapeutics Inc (PRTO): James E. Flynn and Peter Kolchinsky Think These Stocks Look Healthy

Synergy Pharmaceuticals Inc (NASDAQ:SGYP) and Proteon Therapeutics Inc (NASDAQ:PRTO) are in the spotlight as James E. Flynn’s Deerfield Management and Peter Kolchinsky’s RA Capital Management started new stakes in them lately. According to two Schedule 13G forms filed with the SEC recently, Deerfield Management owns about 16.07 million shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP)’s Common Stock, which account for 9.9% of its shares outstanding, while RA Capital Management holds 1.25 million shares of Proteon Therapeutics Inc (NASDAQ:PRTO)’s Common Stock, representing 8.3% of the outstanding stock.

Peter Kolchinsky

Synergy Pharmaceuticals Inc (NASDAQ:SGYP) is a $322.3 million market cap biopharmaceutical company focused primarily on the development of drugs to treat gastrointestinal, or GI, disorders and diseases. According to the SEC filing, Deerfield Management acquired today 16.07 million shares of Common Stock, worth about $54.8 million at current stock prices.

This new position makes of Deerfield Management the largest institutional shareholder (amongst those we track) in Synergy Pharmaceuticals Inc (NASDAQ:SGYP). Other major investors betting on this company are Julian Baker And Felix Baker’s Baker Bros. Advisors and Israel Englander’s Millennium Management, which last disclosed –by the end of the second quarter- ownership of 1.75 million shares and 330,690 shares, respectively.

Proteon Therapeutics Inc (NASDAQ:PRTO) is a $146.11 million market cap early-stage biopharmaceutical company engaged in the development of elastases to treat the growing medical needs of renal and vascular disease patients. RA Capital Management recently declared the purchase of 1.25 million shares of Common Stock, just after the company’s IPO was closed.

Interestingly enough, Deerfield Management also disclosed, a few days ago, ownership of 1.25 million shares of Proteon Therapeutics Inc (NASDAQ:PRTO), which account for 8.37% of its outstanding stock. The fund had filed an Initial Statement of Beneficial Ownership of Securities just a few days earlier, declaring ownership of 535,219 shares of Series D Preferred Stock*, and 428,175 Series D Purchase Rights**. Previous to the offering, the fund held a 10% stake in the company.

Also recently, RA Capital Management initiated a stake in TG Therapeutics Inc (NASDAQ:TGTX), with more than 3.14 million shares, while Deerfield Management increased its wage on Alimera Sciences Inc (NASDAQ:ALIM) to around 2.4 million shares, or 5.58% of it common stock, up from 1.3 million shares it held previously.

* Each share of Series D Preferred Stock is convertible at any time into 0.063 shares of the company’s common stock (on an adjusted basis, after giving effect to the 1-for-15.87 reverse stock split effected by the Issuer on October 6, 2014). These shares will be automatically converted into Common Stock upon the closing of the company’s initial public offering, and have no expiration date (SEC).

** The Series D Purchase Right entitles the holder to purchase shares of Series D Convertible Preferred Stock under the Series D Preferred Stock purchase agreement at a price of $0.588656 per share. The right to purchase is not currently exercisable and shall terminate upon the completion of the company’s initial public offering.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.